Green Leaf Innovations Inc (GRLF)

[hpham10]

I looked through the filing and found that the conversion rate is actually 2 preferred shares for 1 common. So they paid 0.02 per share.

Quarterly Report: for period ending Sept. 30 2011
http://www.otcmarkets.com/financialReportViewer?symbol=GDSM&id=73887

On page 2
Shares outstanding 444,887,086
Freely tradable 414,887,086
The different in OS-Float is 30M common shares

On page 3: All they other preferred are not issued
Series E
Shares authorized 60,000,000 60,000,000 60,000,000
Shares outstanding 60,000,000 60,000,000 60,000,000
Freely tradable 0 0 0
Beneficial shareholders 1 1 1
Shareholders of record 1 1 1

So there are 60M preferred shares and this mean 60M preferred to 30M common shares or 2 preferred shares for 1 common share.

To reworded this, the investor paid $400,000 for 20M common shares (40M preferred converted to common) or 0.02 per share. Not a bad deal for the company or the investor IMHO. If I'm investing $400,000 I want a premium too.

This is only a one time deal though. The nest 10 million shares are sold at 0.10